Adani Group and IT stocks boost markets as focus on US debt ceiling talks
Debt ceiling discussions in the United States are affecting global markets. (Representative)
Bengaluru:
Indian stocks rose on Tuesday, fueled by information technology and Adani equity group, even as markets watched talks of the US debt ceiling.
The blue-chip Nifty 50 index rose 0.41% to 18,391.50 at 10:08 a.m. IST, while the benchmark S&P BSE Sensex rose 0.33% to 62,165.70.
Ten of the 13 major sector indices advanced, with the metals index jumping almost 3%. Adani Enterprises Ltd, which has a 17% weighting in the metals index, jumped more than 12% and was the Nifty 50’s top gainer.
All Adani Group shares jumped 2% to 13% and extended gains after market regulator Securities and Exchange Board of India (SEBI) found no conclusive evidence after an investigation into alleged investment breaches strangers in the group.
The Supreme Court’s panel ruled out regulatory failure over the price manipulation claim.
“The high integrity of the panel members must have given investors confidence to buy the battered (Adani) stocks,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
Bharat Petroleum Corporation Ltd rose more than 2% and was among Nifty’s top 50 gainers. The oil refiner on Monday announced an increase in its net profit in the fourth quarter, after trading hours.
High-weight IT stocks rose almost 1%. A report from credit rating provider S&P Global Ratings, released on Monday, said Indian IT companies were resilient to downside risks due to strong balance sheets, high recurring cash flows and a track record of execution.
As U.S. debt ceiling talks failed to reach an agreement on Monday, U.S. President Joe Biden and Republican House Speaker Kevin McCarthy vowed to continue negotiations.
Asian markets advanced on signs of progress in US debt ceiling negotiations and strong macro data out of Japan.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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